Following the financial collapse of 2008 precipitated by the banking system's widespread failure and subsequent consumer credit crisis, employee demand for intra-cycle payroll payment or advance of earned wages increased exponentially.
The majority of 40,000,000 unbanked households (106 million people) in the United States do not have access to short term credit other than payday loans. The high cost of payday loans creates a tough-to-break cycle creating the need for more payday loans. The average cost of these loans is a significant percentage (15%+) of the average take-home pay for this group. The impact of this expense on this group can severely limit their ability to afford the necessities of their job (transportation) and basic needs such as food & housing.
Furthermore, payday loans may not provide instant access to cash as the borrower may have to wait for banks or check-cashing services to open or wait for checks to clear. Also, when cashed the borrower may be at risk of theft or loss of the cash.
Therefore, what is needed are systems, methods and computer program product to provide means for intra-cycle payment of accrued employee wages and/or advances on unearned wages that overcome challenges in the art, some of which are described above.